If you have been recently been turned down for a home mortgage refinance or modification there is help. President Obamas “Making Home Affordable” plan will allow millions of struggling homeowners the chance to refinance their home loan into a new 4.5% fixed rate mortgage. The savings for homeowners who use this plan average hundreds per month.

More information about the “Making Home Affordable” plan.

Basically the “Making Home Affordable” plan eases the requirements and restrictions for homeowners looking to refinance their mortgage. In some situations, mortgage lenders and banks are required to perform a home loan modification of certain loans. Pretty much anyone who has been effected financially by this tough economy is eligible to benefit from this housing bailout.

President Obama wanted to stimulate the ailing housing market while at the same time make more potential homeowners eligible for new loans and allowing existing homeowners a chance to refinance their home, which would also stem the tide of foreclosures sweeping across the country.

As reported by major news outlets, Obamas “Making Home Affordable” plan was just a $75 billion dollar part of a larger stimulus plan. Mortgage lenders and banks received a large percentage of this money as cash incentives to cover existing home loans and be able to offer new ones. Many homeowners or home buyers can benefit from the new chances and fierce competition between mortgage lenders for their business.

Would this “Making Home Affordable” plan benefit me?

If you have been recently looking into refinancing and came to the conclusion that it just did not make financial sense or was not possible due to requirements and restrictions by mortgage lenders? This new plan from Obama will change that for your benefit.

Under the guidelines of this “Making Home Affordable” plan, mortgage lenders and banks must assist homeowners in reducing their monthly home payments to no more than 31% of their monthly income. A lot of homeowners, especially in this market and economy, are paying upwards of 50% of their income or more towards their monthly mortgage payment.

Mortgage lenders and banks may even offer a home interest rate as low as 2% in order to meet the guidelines set by Obama. The costs that the lender accrues from doing this is covered by the Government with cash incentives.

There are some qualifications to be aware of if you are want to take advantage of this home refinancing plan. You must have been current and on time with all mortgage payments for the past full year. If you have had any payments more than 30 days late you will not be eligible. A letter of “Financial Hardship” may also be needed which states reasons such as a loss of job, loss of income, and others. Homeowners who have seen the value of their property fall by 15% or more may qualify for a 2% home interest rate. Also, any homeowner who has a mortgage financed through Fannie Mae or Freddie Mac is automatically eligible for a 2% home modification.

An estimated 9 million homeowners can save hundreds every month by taking advantage of the Presidents home refinance stimulus plan. Carefully consider your home refinancing and modification options and make your decision today and see the savings next month.

-M Petrone

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